The UK’s Financial Conduct Authority (FCA) is now using its powers to stop the companies that advised victims of the British Steel Pension Scheme (BSPS) from selling off their assets to mitigate paying compensation.
Without consultation, the financial watchdog has launched emergency asset restriction rules with the aim of blocking firms from wriggling out of the redress owed to victims. The firms involved will now need to adhere by the newly instated rules until they can confirm that they hold adequate resources to settle their upcoming compensation bill.
After many years campaigning, those involved in the troubled pensions scheme were recently informed they were entitled to more than £71 million worth of financial compensation.
A probe launched in December last year found that close to half of the advice issued to members of the BSPS was entirely unsuitable. Consumers and savers seeking independent financial advice in Chester, Birmingham and other UK cities often consult wealth managers. Able to offer an unbiased financial perspective to their clients, wealth management teams can guide them on the best course of action to take in a wide range of areas.
The BSPS scandal that took place back in 2017 involved members of the scheme being advised to withdraw their funds. The advice was taken, and the members lost substantial sums of money as a direct result.
Now, those impacted can submit a financial claim to receive compensation. Redress should be issued towards the end of next year, according to the UK watchdog.
